Finance a Cabin

As we are solely focused on Building Compac Homes, we are unable to provide finance directly. We can recommend Squirrel Finance who specialise in transportable homes on wheels, or talking with your bank.

With a simple online process, it’s the easiest way to make your Compac Home dream a reality. Interest rates range from 9.55%p.a to 18.95%p.a. and unlike a fixed rate home loan, you can make early repayments whenever you like or pay off the whole thing off without penalty.

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Westpac has developed a funding product that takes security over the prebuilt while it is being built in the factory. This allows the customer to fund the home while it’s being built. Westpac NZ was the first New Zealand bank to launch a dedicated mortgage product aimed at helping Kiwis into prebuilt homes.

The product is called ‘Choices Pre-Built’ and allows customers to make progress payments to the builders while the home is being constructed  Being able to invoice for progress payments allows builders to use less working capital which reduces their costs. The Choices Prebuilt product launched in July 2019 and since then there has been an increasing interest in prebuilt businesses and customers.

Rent-to-Own is very similar to finance. Although we don’t do rent-to-own as such, Compac homes recommend a third-party provider who specialises in lending for Transportable Homes. An online application can be completed by clicking here.

  • Won’t do Rent-to-Own/Buy, we offer Finance.
  • The applicant must be living in New Zealand and have a full-time job.
  • No equity or property ownership required; however, the applicant must have good credit.
  • The Landowner will be required to sign a one-page document allowing the unit on the property [if the applicant doesn’t own the land].
  • Interest rates are from 8.95% (not guaranteed to be 8.95%)
  • Term length is up to 7 years
  • The maximum lend is $70,000 or $100,000 to Tier 1 borrowers with excellent credit.
  • The deposit amount is negotiable depending on your circumstance. No deposit options are available.
  • You can not use your Kiwisaver
  • You can find out repayment estimates via their website Here

Rent to Buy a Tiny Home – Explained

Rent to Buy is a type of purchase where something like a Compac Home home is leased in exchange for a weekly or monthly payment. In theory this sound simple. However, with Rent to Buy there is the option to buy the asset (Transportable Home) at some stage during the agreement. This is how Rent to Buy is different from a traditional renting agreement, as at the end of a lease you have to give back the item. Typically with Rent to Buy, a person pays a bond and moves in as a tenant, and pays “rent” for a period of time. In a rent to buy arrangement, the rent amount will be higher than normal as it is being used to form a deposit to purchase the asset.
Once the deposit is in place, the tenant buys the unit at the agreed price and becomes the legal owner. Or alternatively there is a risk you will lose the deposit you have paid, if you cannot complete the transaction.
The main catch with Rent to Buy, is the product provider is usually self-funding the lend, and therefore the contract will have a very high interest rate to cover the risk.

Finance for a Compac Home

In essence, Finance is where the customer secures a loan from a third-party lender to purchase their Compac Home. The customer will immediately take possession and ownership of the unit (once completed), and make regular repayments to the company that provided the funds. The end result is that you’ve paid a slightly higher amount than the cost of the item, but in the end, you own it outright 100%. The finance is secured against your Compac Home, so if you can’t keep up with the payments the lending company will take back the cabin you’ve bought to recover their costs. Finance is usually with an external finance company that specialise in lending and therefore has a far lower and more responsible interest rate.

There are specific rules and restrictions for withdrawing your Kiwisaver and it is only to be used for a permanent house & land purchase where a Title is issued. This means you will need to permanently fix your Compac Home to the Ground to turn your vehicle purchase into a building under the Building Act. This can be done by getting a foundation plan and council consent. We can recommend the following companies to help you with this process.

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